Tao Xiang International Finance Lecture (No. 17): Internationalization and Strategic Prospect of Chinese Banks

On September 29, Tao Xiang International Finance Lecture (No. 17) was successfully held in Renmin University of China. Dr. E Zhihuan, chief economist of Bank of China (Hong Kong), delivered a speech on the theme of "Internationalization and Strategic Prospect of Chinese Banks". Tu Yonghong, deputy director of IMI and Professor of School of Finance and Economics chaired the lecture. Also present were: Wang Fang, deputy director of IMI and professor of School of Finance and Song Wei, associate professor of School of Finance, etc. Dr. E Zhihuan introduced Chinese banks from four parts, namely: the scale and quality of assets, the evaluation of internationalization, the international strategies, and internationalization in the future. In the first part, Dr. E Zhihuan pointed out Chinese banks enjoyed advantage of scale. The four major Chinese banks once again ranked top across the globe, further consolidating their leading position. Besides, the strong supervision of Chinese banks delivered a healthier asset structure. In the second part, after introducing Bank Internationalization Index (BII), major indicator of bank internationalization, Dr. E Zhihuan affirmed the progress of made by Chinese banks, including the steady increase of BII and the best overseas development among developing countries, but also pointed out the need for further improvement. In the third part, Dr. E Zhihuan analyzed factors restricting internationalization of Chinese banks, including: concentrated distribution, fixed business, out-dated management, and etc. In the future, covering more regions, business fields, and enterprise demand should be priorities of Chinese banks. In the fourth part, Dr. E Zhihuan pointed out that the internationalization of Chinese banks is facing both opportunities and challenges. In the future, they should draw from advanced peer experience around the globe to expand international business. In the Q&A session, Dr. E Zhihuan answered students’ questions in terms of the opportunities of Chinese banks under the Belt and Road Initiative, the importance of developing offshore markets, and the golden time to grasp opportunities. In the end, Wang Fang and Song Wei also commented on the internationalization of Chinese banks and thanked Dr. E Zhihuan for her dedication to alma mater. Professor Tu Zhihong presented Dr. E Zhihuan the honorable certificate of Tao Xiang International Finance Lecture

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